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Canada Employment Contract Ontario

Littler

Ontario, Canada Court Confirms a Clearly Drafted Temporary Layoff Clause Can Protect Employers From Constructive Dismissal Claims

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In Taylor v. Salytics Inc., 2025 ONSC 3461, the Ontario Superior Court of Justice considered whether a temporary layoff provision in an employment contract constituted a termination provision, and was therefore subject to the...more

Bennett Jones LLP

Ontario Court Confirms Temporary Lay-Off Clause Is Distinct From Termination Clause

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In Taylor v Salytics Inc., 2025 ONSC 3461 (Taylor), the Ontario Superior Court of Justice emphasized the importance of a substance-over-form analysis in the interpretation of employment agreements, concluding that a temporary...more

Mintz - Employment Viewpoints

Attention Ontario Employers: Ontario Court of Appeal Upholds ESA Termination Clause in Bertsch v Datastealth Inc.

In a rare but significant “win” for employers, the Ontario Court of Appeal confirmed that an employer can enforce a termination provision limiting an employee’s entitlements strictly to the minimum standards under the...more

Bennett Jones LLP

An “Exacting Standard”: the Enforceability of Termination Clauses and the “At Any Time” Conundrum

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Baker v Van Dolder’s Home Team Inc. (Baker) is the latest decision in Ontario to conclude that a termination provision permitting an employer to terminate, without cause, “at any time” is contrary to the Employment Standards...more

Blake, Cassels & Graydon LLP

British Columbia and Ontario: Two Diverging Approaches to Interpreting Termination Provisions

Overview - Employers increasingly face challenges regarding whether termination provisions in their employment agreements will be determined to be enforceable if challenged in court. As we continue to see increasing court...more

Miller Canfield

Important Update on U.S. Tariffs Impacting Ontario Businesses

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The United States has announced the imposition of new tariffs on Canadian goods, effective immediately as of March 4, 2025. These tariffs include a 25% surcharge on a wide range of products imported from Canada....more

Littler

Ontario, Canada Human Rights Tribunal Dismisses Probationary Employee’s Discrimination Claim

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In Karim v. Workplace Safety and Insurance Board, 2024 HRTO 1231, the Human Rights Tribunal of Ontario (HRTO) dismissed a probationary employee’s claim that they were discriminated against with respect to employment because...more

Littler

Ontario, Canada Court Finds Employer Repudiated Employment Agreement When it Failed to Pay Employee’s Contractual Severance

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In Timmins v. Artisan Cells, 2025 CanLII 2387, Ontario’s Superior Court of Justice found, in an undefended claim, that the employers “by their correspondence and actions” repudiated the employee’s employment agreement when...more

Littler

Ontario, Canada: February 27, 2025 — Some Employees May Be Entitled to Paid Time Off to Vote

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The 2025 Ontario provincial election will take place on February 27, 2025. Voters will elect their Member of Provincial Parliament to represent them at Queen’s Park. In most of the province, polls are open on election day...more

Littler

Ontario, Canada Court of Appeal Agrees “For Cause” Termination Provision Was Unenforceable Because it Did not Comply with ESA’s...

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Applying prior precedent, the Court of Appeal for Ontario (OCA) in Dufault v. Ignace (Township), 2024 ONCA 915, upheld the Ontario Superior Court of Justice’s (OSCJ) finding that the “for cause” termination provision in an...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Ontario Court Reaffirms Importance of Clear and Compliant Language in Employment Agreements

In December 2024, the Court of Appeal for Ontario released its highly anticipated decision in Dufault v. Ignace (Township). The three-judge panel determined that the “for cause” termination clause contained in the employee’s...more

Bennett Jones LLP

New Regulations Regarding the Hiring Process: Key Dates and Information for Ontario Employers

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Ontario has recently published regulations offering employers further details on the new amendments to the Employment Standards Act, 2000 (ESA) related to the hiring process....more

Littler

Ontario, Canada Court Finds Termination Provisions Unenforceable and Awards Employee Punitive Damages

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Wilds v. 1959612 Ontario Inc., 2024 ONSC 3452, involves a wrongful dismissal action in which the employee brought a motion for summary judgment. The court found the termination provisions in her employment agreement were...more

Littler

Ontario, Canada Court Upholds Provision Limiting Employee’s Termination Rights to Minimums Under Employment Standards Legislation

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In Bertsch v. Datastealth Inc., 2024 ONSC 5593, the Ontario Superior Court of Justice dismissed an employee’s claim for common law reasonable notice of termination on a Rule 21 motion....more

Littler

Ontario, Canada Appellate Court Provides Guidance to Employers on How to Draft Employment Settlement Documents

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The Court of Appeal for Ontario found that settlement documents signed after an employee separated from employment prevented him from suing for the value of vested stock options....more

Littler

Ontario, Canada Court Reinforces Waksdale’s Impact on Enforceability of Termination Provisions and Provides Guidance on Proving...

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In De Castro v. Arista Homes Limited, 2024 ONSC 1035, Ontario’s Superior Court of Justice (Court) held the termination provision in an employment contract was unenforceable because it defined “cause” more broadly than does...more

Littler

Ontario, Canada Appeal Court Confirms Employment Contract Frustrated by Employee’s Refusal to Comply With COVID-19 Vaccination...

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In Croke v. VuPoint System Ltd., 2024 ONCA 354, the Court of Appeal for Ontario (OCA) upheld the Superior Court of Justice – Ontario (SCJ)’s summary judgment decision that an employee’s refusal to comply with their employer’s...more

Ius Laboris

Canadian court upholds termination of unvaccinated worker

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The Ontario Court of Appeal recently held that an employee’s failure to meet COVID-19 vaccination requirements imposed by a third party amounted to frustration of the employment contract. As a result, there was no obligation...more

Littler

Ontario, Canada Court Finds Termination Clauses in Fixed-Term Employment Agreement Unenforceable

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In Dufault v. The Corporation of the Township of Ignace, 2024 ONSC 1029, the Ontario Superior Court of Justice held that the termination provisions of a fixed-term employment contract were illegal and unenforceable because...more

Bennett Jones LLP

Changes to Ontario's Employment-Related Legislation Have Arrived

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As you may have heard or read in our earlier blog, More Changes to Ontario's Employment-Related Legislation Are on the Horizon, the Ontario government introduced Bill 79, Working for Workers Act, 2023 in late March 2023. On...more

Stikeman Elliott LLP

Fixed in Stone - Fixed Term Remains Secure Despite Invalid Termination Clause

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The Ontario Superior Court of Justice recently released its decision in Kopyl v Losani Homes (not yet cited) (the “Decision”), providing insight into the enforceability of fixed terms in employment agreements in circumstances...more

Littler

Ontario, Canada Court Finds Employment Contract Frustrated by Employee’s Refusal to Become Vaccinated Against COVID-19

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In Croke v. VuPoint Systems Ltd., 2023 ONSC 1234, Ontario’s Superior Court of Justice decided that an employee’s refusal to comply with mandatory COVID-19 vaccination requirements resulted in the frustration of the parties’...more

Stikeman Elliott LLP

“Fixing” the Term of Employment: Fixed-Term Agreement defends against Wrongful Dismissal Claim

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In the recent Steele v. The Corporation of the City of Barrie, 2022 ONSC 7245 decision (“Steele”), the Ontario Superior Court of Justice provided some insight into when longer term fixed-term contracts can be enforceable....more

Littler

Ontario, Canada Court of Appeal Finds Employers’ Discretion in Awarding Discretionary Bonuses Must be Exercised Fairly and...

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In Bowen v. JC Clark Ltd., 2022 ONCA 614, the Ontario Court of Appeal (OCA) put employers on notice that their discretion in awarding discretionary bonuses is not unconstrained and must be exercised fairly and reasonably. ...more

Littler

Ontario, Canada Court Decides Employment Contract’s Unenforceable Confidentiality and Conflict-of-Interest Clauses Invalidated All...

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Two years ago in Waksdale v. Swegon North America Inc., 2020 ONCA 391,  the Ontario Court of Appeal established the proper method for determining whether a termination clause in an employment agreement is enforceable. ...more

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